Are Luxury Retail Landlords Vulnerable? Simon Property Misses On Q1 Earnings

It is common knowledge that small, lower-quality malls are struggling, but experts have largely believed that luxury retail landlords are immune to the current retail blight. Simon Property Group, which specializes in luxury properties, just missed its Q1 earnings estimates, signaling further trouble ahead for luxury mall landlords.

Handbags

Simon Property Group is the largest retail property firm in the country. The firm reported first-quarter earnings per share of $1.53, falling two cents short of analysts estimates, Street Insider reports. While earnings lagged, the company's revenue was up 0.7% to $1.35B, beating analyst estimates of $1.33B.

The REIT’s CEO, David Simon, said the firm is surviving the choppy retail environment by investing in its portfolio, referencing the opening of two international outlet centers.

"Today, even in the current choppy retail environment, we are pleased to reaffirm our outlook for the year, which is a testament to the strength of our company," Simon said in a statement.

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